Government has warned that it will suspend the mining license of CNMC Luanshya Copper Mines Plc if the company does not reverse its decision to stop production at its Baluba mine.
CNMC Luanshya said last week that it had arrived at the decision after considering the rising cost structure for its Baluba Mine owing to the weaker copper price and increased load shedding.
Speaking on ZNBC’s Sunday Interview last evening, Mr Kambwili who is also Information Minister and Roan MP said government will not tolerate layoffs.
Mr Kambwili said the government would not accept any job losses as a result of the power shortage and had told CNMC Luanshya to rescind its decision.
“If they don’t comply we will revoke their licence, “Every investor who comes to Zambia must respect the law of the land.”
“We have options that we can take as government and one of the options is to suspend their mining license,” he said.
Mr Kambwili said the company did not follow procedures and acted “illegally”.
“If they don’t follow the procedure there are options for government to invoke. We shall invoke the provisions of the law and suspend their entire mining operation.”
The Mineworkers Union of Zambia says about 1,600 members are affected by the decision.
On Mopani Mines decision to suspend operations for 18 months, Mr Kambwili said Glencore is yet to inform government of its decision to suspend operations in Zambia.
“If they also want to suspend their operations, indeed they will write to us. As far as we’re concerned there is nothing going to happen at Mopani until we are written to. The position of government is that that is speculation.”